Washington, D.C. — In a bold assertion of his administration’s trade policy, President Donald Trump announced plans to impose a 100% tariff on foreign-produced films, highlighting ongoing tensions in international trade and its impact on the U.S. movie industry. Trump claims that the American film sector is facing a rapid decline, attributing this to foreign incentives that attract filmmakers away from domestic production.
On his Truth Social platform, Trump stated that he has instructed the U.S. Department of Commerce and the Trade Representative to initiate the process for these tariffs, which he labeled a “National Security threat.” He emphasized that the competitive disadvantages from other countries’ incentives amount to “messaging and propaganda,” reiterating his desire for films to be made in America.
Commerce Secretary Howard Lutnick confirmed that the administration is addressing the situation, although details surrounding the tariff’s implementation remain unclear. It is uncertain whether the measure will also affect U.S. companies that shoot films abroad, a common practice for major studios. Productions like “Deadpool,” “Wolverine,” and “Gladiator II” have recently filmed outside the United States, casting doubt on the tariff’s potential effectiveness.
In addition, it is not specified if the tariffs will apply to streaming films on platforms such as Netflix or only to those shown in theaters. Responses from international bodies like the United Kingdom’s Department for Culture, Media & Sport and the Motion Picture Association have yet to materialize, leaving many questions unanswered.
Australia’s government is already voicing opposition to Trump’s proposal, with Home Affairs Minister Tony Burke stating that they will fiercely support their film industry. New Zealand Prime Minister Christopher Luxon echoed similar sentiments, emphasizing his backing for the local sector and expressing interest in clarifying the specifics of this announcement.
Since resuming office in January, Trump has implemented various tariffs aimed at bolstering U.S. manufacturers and protecting jobs domestically. However, his policies have also contributed to instability in the global economy, leading to anticipated price increases for a range of goods.
Despite challenges, the U.S. continues to be a significant player in global film production, as noted in a recent report from industry research firm ProdPro. However, 2022 saw a 26% decrease in domestic production spending, compounding the difficulties for Hollywood. In contrast, other countries like Canada, Australia, and the U.K. have successfully attracted increased filmmaking activity during the same timeframe.
This latest tariff proposal follows a broader pattern of retaliatory trade measures. China has already indicated plans to limit the import of American films, citing the negative impact of U.S. tariffs on its audience’s reception of Hollywood productions. Trump’s administration has aggressively imposed tariffs on Chinese goods, intensifying trade frictions between the two nations.
On Air Force One, Trump discussed ongoing trade negotiations with various countries, including China, though he noted no immediate plans to communicate with Chinese President Xi Jinping. He hinted at potential trade agreements but did not provide specific details. In an interview, he suggested he might be open to reducing tariffs on China, signaling a willingness to prioritize business relationships.
Additionally, Trump indicated he might extend the deadline for ByteDance to divest its U.S. operations of TikTok, as ongoing negotiations have stalled. The deadline to resolve ownership of the widely used app remains set for June 19, but a possible extension could provide room for further talks.
As tensions mount over trade and film production, the implications of Trump’s proposed tariffs could reshape the landscape of the American entertainment industry, further complicating a sector already grappling with the complexities of globalization.